Question: Because real capital is supposed to earn a higher return where it is scarce, how do you explain the fact that most international investment flows

Because real capital is supposed to earn a higher return where it is scarce, how do you explain the fact that most international investment flows to the IACs (where capital is relatively abundant) rather than to the DVCs (where capital is very scarce)?

Step by Step Solution

★★★★★

3.55 Rating (159 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Capital earns a higher return where it is scarce other things equal How... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

252-B-E-M-E (2235).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

How do you explain the fact that some people make very high returns on stock markets?

How do you explain the fact that years ago, cheese was considered the poor person's food, selling for less than a quarter of the price of beef? Today, beef and cheese are priced approximately the...

How do you explain the fact that a single rose at the supermarket florist Is $1.49 every day of the year except the week before and during Valentine's Day, when it increases to $3.50?

In Microsoft Word type answer and insert your graph to complete the assignment. 1. Explain the impact of the lump sum tax through the use of an MPS of 1/5 and 1/4 on the domestic economy. 2. Graph...

KEY QUESTION Because real capital is supposed to earn a higher return where it is scarce, how do you explain the fact that most international investment flows to the IACs (where capital is relatively...

6. Because real capital is supposed to earn a higher return where it is scarce, how do you explain the fact that most international investment flows to the IACs (where capital is relatively abundant)...

PLEASE ANSWER THESE QUESTIONS DONT COPY FROM INTERNET SOURCE PLEASE IT SHOWS PLAG c)What KEY FACTORS may determine the success for Gap Inc.? Explain THREE in your answer. d)Recommendations Make...

Can anyone solve the answers from the given document givenbelow? I really need help. MY FINAL LITERALLY IS KNOCKING AT THE DOOR. Name_________________________________ Student...

Calculating Break-Even In each of the following cases, find the unknown variable: Accounting Break-Even 127.500 135,000 5,478 Fixed Costs Unit Variable Cost Unit Price Depreciation $30 $41 3.200,000...

Your boss asked you to estimate the required number of units sold to achieve a profit of $16,500 per year. Currently, the product is sold at $1800 per unit. You have collected the following...

In a simple, perfect capital market, what happens if dividends are deleted? A . Share prices go up . B . It's impossible to know. C . Share prices go down. D . Share prices remain the same.

Determine the relationships among the four relations in Figure 7-17. List primary keys for each relation and any foreign keys necessary to establish the relationships and maintain referential...

Explain how the confidence of the public in the prosecutor influences the standard of proof in criminal trials.

Most jurisdictions have two possible verdicts in criminal trials: guilty or not guilty. Scottish criminal trials have three possible verdicts: guilty, not proven, or not guilty. Explain the...

For burglary, the victims loss usually exceeds the injurers gain, but the opposite is true for breach of contract. Why? What are the implications for relative dollar values of compensation and...

Question: Construct a strangle (long) to speculate on both sides of stock price moves using Option #2 and Option #3. DRAW the payoff and profit graph for this positon. CVNA (Carvena) closed at $26.2...

really need help on loans, thank you so much ! Clearly and neatly show all work for each problem. Round all final answers to the nearest dollar. Do not round intermediate work. Fitzwilliam is buying...

A manufacturing company has provided the following data concerning its most recent month of operations: Selling price $133 Units in beginning inventory 0 Units produced 7,000 Units sold 6,800 Units...